U.S. long arm jurisdiction raises concerns, and German companies face a choice to obey or resist?

Mondo International Updated on 2024-02-28

In the recent turmoil in international relations, the long-arm jurisdiction of Chinese companies by the United States has once again attracted widespread attention. According to ***,The chairman of the U.S. House Select Committee on China sent a letter to the German company Volkswagen, demanding that it terminate its operations in Xinjiang based on a series of China-related regulations passed by the United States.

In response, China's spokesperson Mao Ning said that the anti-China forces in the United States stigmatize China on the grounds of so-called "forced labor", which is actually disrupting the normal market order, and this behavior will eventually backfire on the United States itself.

In the past, the United States has frequently used long-arm jurisdiction to impose its domestic regulations on companies in other countries, especially cases involving China. This time, US Secretary of State Antony Blinken made it clear in his speech in Munich, Germany, that "it's either on the table or on the menu." ”This sentence shows the consistent diplomatic logic adopted by the United States, that is, to defend its own interests through power politics. In contrast to the United States, some countries, such as Germany, seem to be forced to be on the menu, subject to the long-arm jurisdiction of others.

In the process, the German company Volkswagen became one of the targets of US repression. In this context, it has become a controversial issue whether German companies such as Volkswagen should comply with the demands of the United States and withdraw from their operations in Xinjiang. Mao Ning's views show thatWhen these so-called anti-China forces spread rumors about "forced labor", they are actually trying to create chaos and undermine China's development environment.

At the same time, he pointed out that these plans will ultimately fail, and the Chinese side expects German companies to cherish investment and development opportunities in Xinjiang based on the facts. Behind this series of incidents, in addition to the game between China and the United States, it also involves the responsibility of the international community to maintain a fair and reasonable order. By imposing its domestic regulations on companies in other countries, the United States not only violates international rules, but also undermines the basic principles of multilateralism and freedom. In the face of the long-arm jurisdiction of the United States, Germany and other countries need to adhere to international law and international morality and defend the legitimate rights and interests of their own enterprises.

At a time when tensions between the United States and China are rising, the United States, with its military control and intelligence penetration in Germany, is pushing German companies to put pressure on China. If this geopolitical layout makes it impossible for German companies to withstand the pressure to withdraw from Xinjiang, it will damage their image in China and affect the development of their other businesses in the Chinese market. In particular, the decision of a company like Volkswagen, which has been named by American politicians, will directly affect its prospects in the Chinese market.

Volkswagen's decision will have a profound impact on the Chinese market, especially as electric vehicles replace traditional combustion vehicles. The Chinese market is rapidly emerging as a significant consumer of electric vehicles, while Volkswagen is lagging behind in new technologies. If Volkswagen withdraws from its Xinjiang business due to pressure from the United States, it will further damage its competitive position in the Chinese market and miss the opportunity to develop the electric vehicle market.

In addition, this incident also reflects the tension between the United States and Europe at the macro level. The United States has been engaged in a series of challenges for Europe, from Brexit to the Russia-Ukraine conflict to the issue of the Nord Stream pipelines. Germany, as the economic engine of Europe, is promoting its own great power status, but it is being disrupted by a series of external pressures. Its political strength is relatively insufficient, and the maintenance of its status as a great power depends more on the economic system represented by the manufacturing industry. In this context, Sino-German cooperation has become an important fulcrum for maintaining Germany's position. However, if the United States causes major German companies to partially withdraw from China, Germany will lose its dominant position in the global manufacturing center, and will be more easily exploited by the United States.

In the context of former U.S. Secretary of State Mike Pompeo's clear statement that "lying, cheating, and stealing are the glory of the United States", the United States has demonstrated its long-term China-related geopolitical strategy toward China by concocting Xinjiang-related lies. In the view of the US side, the excuse for exerting pressure on China is not the key, the key is to exert pressure on China through various means, aiming to raise the cost of China's governance, hinder China's development, and try to create the best factors in China. In order to counter this pressure, China has taken action in three main directions.

First, China has countered by dividing and dividing the U.S. system, as well as reducing the U.S. sphere of influence. This work has achieved certain results in the Middle East, Eastern Europe, Latin America, the South Pacific, Africa and other regions. With the advancement of the multilateral process, the global influence between China and the United States has shown a trend of rising and declining, and the US sphere of influence is gradually disintegrating.

Second, China has taken reciprocal countermeasures against the United States in the field of human rights. China pointed out a series of problems in the United States, including racial discrimination, ethnic tensions, the drug problem, and forced labor. On March 28 last year, China released the "2022 Report on Human Rights Violations in the United States", which represents a more systematic counterattack by China against the United States in the field of human rights.

Finally, China will further promote economic, security and technical cooperation with Central Asian countries through its participation in the SCO, BRICS cooperation, the Belt and Road Initiative and other relevant mechanisms, so as to make Xinjiang a frontier and open region for China-Central Asian cooperation。This will not only help Xinjiang's development, but also find new development opportunities for China in regional cooperation.

The cooperation between China and Russia has injected new impetus into the revitalization of Northeast China, and this cooperation has provided support for the economic development of Northeast China. At the same time, the cooperation between China and ASEAN has also opened up new space for Guangxi's development. These two areas of cooperation provide strong support for China's influence in the region.

Under the framework of China-Central Asia-Middle East cooperation, Xinjiang has the opportunity to become an important hub for the Eurasian land route. This will not only contribute to the economic development of Xinjiang, but also provide strategic opportunities for cooperation between China and Central Asia, the Middle East and other regions. This extended partnership provides a more solid foundation for China's global geopolitical layout. However, the United States is constantly distracted in geopolitics. China needs to act accordingly to safeguard its own development space and make the United States suffer the consequences of its troubled actions. By actively participating in multilateral cooperation mechanisms and promoting mutually beneficial cooperation with neighboring countries, China can better safeguard its own interests and ensure the country's continued prosperity and stability.

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